Insiders Are Buying Progressive Waste Solutions

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 |  About: Progressive Waste Solutions (BIN), Includes: CWST, RSG
by: Markus Aarnio

In this article, I will feature one waste management company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10%.

Progressive Waste Solutions (NYSE:BIN) operates as a vertically integrated non-hazardous solid waste management company in North America.

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Insider buying during the last 30 days

  • John Dillon purchased 793 shares on September 26, and currently holds 10,155 shares or less than 0.1% of the company. John Dillon serves as a director of the company. John Dillon increased his holdings by 8.5% in September.
  • James Forese purchased 1,189 shares on September 26, and currently holds 12,800 shares or less than 0.1% of the company. James Forese is Non-Executive Chairman of the Board. James Forese increased his holdings by 10.2% in September.
  • Jeffrey Keefer purchased 793 shares on September 26, and currently holds 5,134 shares or less than 0.1% of the company. Jeffrey Keefer serves as a director of the company. Jeffrey Keefer increased his holdings by 18.3% in September.
  • Douglas Knight purchased 793 shares on September 26, and currently controls 17,173 shares or less than 0.1% of the company. Douglas Knight serves as a director of the company. Douglas Knight increased his holdings by 4.8% in September.
  • Daniel Milliard purchased 793 shares on September 26, and currently controls 17,167 shares or less than 0.1% of the company. Daniel Milliard serves as a director of the company. Daniel Milliard increased his holdings by 4.8% in September.
  • William White purchased 558 shares on September 26, and currently controls 558 shares or less than 0.1% of the company. William White serves as a director of the company. William White increased his holdings from zero shares to 558 shares during the last 30 days.

Insider buying by calendar month

Here is a table of Progressive Waste Solutions' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
September 2013 4,919 0
August 2013 5,000 10,000
July 2013 0 0
June 2013 66,600 0
May 2013 0 0
April 2013 0 0
March 2013 38,323 10,000
February 2013 0 0
January 2013 161 0
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There have been 115,003 shares purchased and there have been 20,000 shares sold by insiders this year.

Financials

Progressive Waste Solutions reported the second-quarter financial results on July 30, with the following highlights:

Revenue $516.8 million
Net income $13.5 million
Cash $35.0 million
Debt $1.6 billion
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Outlook

Progressive Waste Solutions' guidance for full-year 2013 is as follows:

Revenue $1.977-$1.997 billion
Adjusted EBITDA $538-$548 million
Free cash flow $211-$225 million
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Competition

Progressive Waste Solutions' competitors include Casella Waste Systems (NASDAQ:CWST) and Republic Services (NYSE:RSG). Here is a table comparing these companies.

Company BIN CWST RSG
Market Cap: 3.00B 231.63M 12.17B
Employees: 7,658 1,800 30,000
Qtrly Rev Growth: 0.09 0.09 0.03
Revenue: 1.99B 466.30M 8.19B
Gross Margin: 0.39 0.29 0.37
Operating Margin: 0.12 0.05 0.13
Net Income: 105.50M -41.60M 460.60M
EPS: 0.92 -1.31 1.26
P/E: 28.32 N/A 26.62
PEG: 1.83 N/A 4.93
P/S: 1.51 0.50 1.49
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Progressive Waste Solutions has the highest P/S ratio among these three companies.

Here is a table of these competitors' insider-trading activities this year.

Company Insider buying / shares Insider selling / shares
CWST 27,000 3,857
RSG 0 91,513
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Only Progressive Waste Solutions has seen intensive insider buying during the past 30 days.

Conclusion

There have been six different insiders buying Progressive Waste Solutions and there have not been any insiders selling Progressive Waste Solutions during the past 30 days. Three of these six insiders increased their holdings by more than 10%. Progressive Waste Solutions has an insider ownership of 5.10%.

There are nine analyst buy ratings, six neutral ratings and zero sell ratings with an average target price of $26.71. The stock is trading at a P/E ratio of 28.32 and a forward P/E ratio of 21.11.

Progressive Waste Solutions has a book value of $11.02 per share and the stock has a dividend yield of 2.23%. The 200-day moving average is currently at $22.37, which could be a good entry point for the stock.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.